Club Mahindra Holidays — gst differential demand for payment made in 2015

Ashish0485

from Bengaluru, Karnataka

Address:	Chennai, Tamil Nadu
Website:	www.clubmahindra.com

My membership id. Is 2790268 and interaction id. Is 11640365. My emis for the membership were paid/completed in 2015. Some 10-15 days back i saw a pop up in my dashboard under payments stating that gst differential to be paid is inr 802.37. I didn't get it because how can you charge present tax on a transaction that was made in the past i. E.2015. It's completely illegal. I complaint about it on dec 5, however, still the query remains unresolved.in between, i had also connected through facebook by sending a direct message, in response to which i received a call, however, the executive only kept on repeating the same line i. E. As per his knowledge they are charging this differential to every member as club mahindra had to pay this extra amount on behalf of everyone. When i asked him the same question that why club mahindra had to pay this amount when the transaction took place in 2015, well before gst came to life? He said he doesn't have any idea. However, this logic seems bizzare. It is like you purchased a train ticket in 2015 and paid service tax and now indian railways reaches out to you saying that pay extra for that ticket because gst is implemented or like you bought a car in 2015 but now tax slab has changed so, now you again need to pay extra for the car. How ridiculous... The executive promised me that someone who has knowledge of accounting and law in cm will call me to explain why gst differential would be applicable. Still no call from them. I can understand if they apply gst on annual subscription fee (Asf) as it is collected every year but how can they apply gst on the membership value that was paid 2 years back...

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Club Mahindra Holidays customer support has been notified about the posted complaint.

Dec 13, 2017

Updated by Ashish0485 I received a call from a club mahindra representative Mr. Rajnath. According to him, owing to the unique timeshare model of Club Mahindra, there is some ambiguity owing to which club mahindra was forced to pay extra tax to Government on behalf of customers even if the EMIs got completed before July 2017. Thus, they are trying to recover that money from customers.

I asked him to give this in writing and this is what I received (from another representative (named Arosha Jessy):
"Further to your telephonic conversation with Rajnath, we would like to explain about Differential service tax charged against your membership

GST Rate would be 18% instead of current service tax rate of 15% on ASF for all the invoice to be raised w.e.f. 1st July 2017.

All the existing EMI’s to be received post 1st July 2017 will attract GST Rate of 18% instead of current service tax rate of 15%. The Differential GST Rate i.e. 3% need to be recovered from existing customer. E.g. If member is making his past EMI payments after 1st July’17, then GST would apply.

If member is making the ASF which was invoiced before 30th June, then GST does not apply."

However, this is exactly what I was saying all this while that if the transaction has got completed before July 2017 then, a customer is not liable to pay any additional tax. my last EMI was paid on 19th August 2015 and my last ASF was paid on 15th June 2017. So, based on the latest email from Arosha, I should not be liable to pay anything.

Net/net, there are two takeaways:
- As per conditions mentioned in their email, I am not liable to pay any additional tax because all my payments got completed before July 2017, but my dashboard says INR 802.37 to be paid as GST differential.
- What Mr Rajnath said over phone and what was communicated over email contradict each other. So, there is a big communication gap at Club Mahindra.

Now, I am really getting impatient. Please someone, probably someone senior from club mahindra needs to step in and rectify the issue asap.

Dec 18, 2017

Updated by Ashish0485 There has been no communication from Club Mahindra since I raised this complaint.

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Comments

Kashayapvv

Aug 14, 2021

I have a similar case as above. My last EMI payment towards membership was on 7th May 2016.Club Mahendra is charging diffrential Service Tax to me on EMIs. I have explained the executive that when GST was implemented on 1st Jul 2017, I had no dues pending How can club charge the diffrential rate?

Kashayapvv

Aug 14, 2021

please guide on the matter of DST being charged by Club Mahendra on the EMIS which were paid by 7th May 2016 for a membership taken in 2015